By Brandon Thurston & Jason Ounpraseuth
WWE received approval for as much as $4,314,821 in tax credits for WrestleMania 42 and related events around Las Vegas, according to records made public by the Nevada agency that approves such applications.
The tax credit amount is based on how much WWE expects to spend to produce the events: more than $35 million.
The credit is slightly more than the $4,240,456 WWE was approved for last year for WrestleMania-related events, as part of the same program in Nevada intended to draw film and entertainment business to the state.
WWE submitted an application to the Nevada Governor’s Office of Economic Development (GOED) stating that both nights of WrestleMania 42 at Allegiant Stadium and Raw and SmackDown at T-Mobile Arena were budgeted at $35,577,015. Last year’s projected budget was slightly lower: $33,693,464.
GOED Director of Communications Carli Smith confirmed to POST Wrestling that WWE’s application was approved. She noted to us that an audit is involved, and the qualifying amount is the maximum WWE will receive.
“Their actual tax credit amount will be determined by an independent audit based on their actual spend,” Smith said, “but it cannot be more than the $4,314,821.”
WWE’s Hall of Fame ceremony and the co-promoted comedy event with Tony Hinchcliffe, “Kill Tony,” both are set to take place at the Dolby Live theater, and were not mentioned in the documents.
Along with WWE, the UFC also applied for a projected $450,255 in tax credits for The Ultimate Fighter Season 34. The proposed schedule said the shooting at the UFC Apex would start in April and conclude in May, and the season was budgeted at $3,762,527.
The GOED allowed WWE to redact the stadium fee and talent budget in the public record of WWE’s application. The agency also accepted WWE’s request to seal a required script. That information is being withheld under an exception as proprietary information.
WWE’s budget and tax credit application. Public record via Nevada Governor’s Office of Economic Development.
WWE’s application claimed that WrestleMania weekend delivers more than $200 million in annual economic impact to host cities. That number is said to directly come from WWE spending mainly on the arena, per diem and hotels for freelancers, talent and production staff, as well as visitors spending on food and other entertainment in the city.
Subsidies that allow WWE to offset millions in expenses could be a major factor in what led WWE to return to Las Vegas with its biggest events for the second year in a row.
In addition to last year’s tax credits, WWE also got a $5 million site fee from the local tourism organization, the Las Vegas Convention and Visitors Authority (LVCVA), which is a government entity. The value of the site fee for this year’s WrestleMania events is unknown. Both of these reporters have submitted records requests to the LVCVA in attempt to learn the value of a possible site fee. The agency has not yet produced records in response to our requests. Brandon Thurston filed a petition in August with the Nevada district court against the LVCVA, seeking to compel records from the agency. The case is pending.
On top of last year’s subsidies, the two-day WrestleMania 41 drew a $66 million gate, breaking all existing pro wrestling gate records. Raw and SmackDown in Las Vegas on the surrounding days also generated multi-million dollar gates.
A bill to greatly expand the Nevada film credit program’s budget from $10 million per year to $120 million was rejected by the Nevada Senate in November after being narrowly passed by the Assembly.
